The Gender Pay Gap, And The Latest Government Plans

2020 will see the 50 year anniversary of equal pay laws in the UK. The aim behind the introduction of these laws back in 1970 was to remove any differentials in pay between women and men doing the same, or equivalent work.

45 years on, the statistics which are constantly provided show a stubborn continuation in disparity between the pay of men and women.

Whilst statistics can always be criticised - and are only one step toward understanding whether there is a problem, and indeed what that problem is - the Government has stated a new intention to tackle this.

As a result, we are now going to see the advent of compulsory gender pay reporting - with the Government today issuing its consultation paper on the area.

This note sets out the issues raised in the consultation paper. It also considers what companies should be doing now to prepare. And finally, it touches on the potential risks that will need to be considered in tackling this sensitive topic.

The background

In revising discrimination laws in 2010, the Labour Government introduced the "option" of introducing rules requiring private employers with at least 250 employees to publish information to show whether there are differences in pay between male and female employees in their organisation.

The Coalition Government in 2010 did not take this option up. Instead they introduced gender pay reporting on a voluntary basis, under the Think, Act, Report initiative. This was principally aimed at employers with at least 150 employees. Perhaps unsurprisingly, this scheme has had little impact. Although over 250 companies signed up to it, it was reported in August 2014 that only four companies had published their gender pay gap information through the scheme.

What has now happened?

Blunt statistics show a continued disparity in pay. David Cameron has stated that he wants to eradicate the gender pay gap in a generation. It is clear that more needs to be done to look to achieve this - and the Conservative Government sees compulsory gender pay reporting as the tool to do this.

The consultation paper issued today can be found by clicking here.

What will companies have to do?

The Consultation Paper is light on detail - although it is clear that the new rules will only apply to companies with 250 or more employees.

The key question employers will ask is what information - and what level of information - will need to be given. Employers will also want flexibility to ensure that misleading statistics -...